Employee motivation

Running head: MONETARY COMPENSATION 1

MONETARY COMPENSATION 4

Pros and Cons of Monetary Compensation

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The most common form of rewards is monetary compensation. In this regard, individuals will usually engage in various activities as long as they are assured of this reward. Similarly, illegal groups often use this form of reward to motivate people to join and engage them in their activities (Cragin, 2007; 56). The party that has a large supply of money, therefore, has undue control over the people who expect these forms of reward. As such, there are benefits and disadvantages to monetary compensation as a form of compensation.

Monetary compensation is an ideal form of motivation since it offers a straightforward approach to influencing the behavior of people. An individual will, therefore, be able to state their expected benefits to engaging in a particular activity. Both of the parties in a transaction are therefore satisfied since they all receive what they want. This form of compensation also makes it easy to increase the loyalty of those working for them (Frey, 2004). By significantly increasing the expected benefit of their subjects, they are guaranteed their objectives will be achieved. The approach makes it feasible for top performers to be enabled when there are existing constraints that do not allow promotions and raises (NATO and Demet Ulusoy, 2008). This is in the form of additional monetary compensation as a reward to maintain their exceptional performance. Subjects who put in more effort are guaranteed of higher levels of rewards, unlike others. Furthermore, subjects are motivated because they are able to control their income level (Cragin, 2007; 82). The harder they work to fulfill the goals of their master, the higher the level of compensation they expect to receive.

However, there are several disadvantages associated with monetary compensation. Money gives people the controlling power over people who have a deficit of finances (Frey, 2004). This controlling power makes the subjects operate at the will of the person with more money; hence, they can engage in illegal actions for the sake of getting more monetary compensation(Shapiro and Siegel, 2007; 427). People can also mislead about their capabilities in order to get high monetary compensation. As a result, they end up not performing efficiently at their assigned roles which is a dangerous trend.

Within this setup, it is hard to promote teamwork. This is because monetary compensation is based on the efforts of an individual; hence, a person might focus on improving their personal output to attain more money. To achieve this, an individual might sideline working with others within the organization (Cragin, 2007; 34). Additionally, this can only lead to discord among the team members since they might try to sabotage the efforts of others to gain more compensation. Monetary compensation is one of the reasons for increased recruitment of personnel into terrorist groups (NATO and Demet Ulusoy, 2008). Most of these militants are promised financial rewards for their participation in the conflict, hence a steady flow of people joining these groups from people seeking financial empowerment (Shapiro and Siegel, 2007; 423). In some cases, people are also promised financial compensation will be offered to the families when they engage in suicide missions.

In conclusion, there are several benefits of monetary compensation. However, the need for monetary compensation can be used by those with a steady supply others to take advantage of poor people, resulting in them engaging in illegal activities.

Bibliography

Cragin, Kim. 2007. Sharing the dragon's teeth: terrorist groups and the exchange of new technologies. Santa Monica, CA: Rand Homeland Security.

Frey, Bruno S. 2004. Dealing with terrorism stick or carrot? Cheltenham, UK: Edward Elgar Pub. http://site.ebrary.com/id/10471727.

NATO Advanced Research Workshop on Political Violence, Organized Crimes, Terrorism and Youth, and M. Demet Ulusoy. 2008. Political violence, organized crimes, terrorism, and youth. Amsterdam: IOS Press.

Shapiro, Jacob N., and David A. Siegel. "Underfunding in terrorist organizations." International Studies Quarterly 51, no. 2 (2007): 405-429.